On November 17, 2023, SIRI introduced new rules on exemption from the work permit requirement. The new rules allow foreigners to work in Denmark for shorter periods of time without a work permit in certain cases.
The main rule is that a foreigner must have a work permit in order to work in Denmark, cf. section 13 of the Aliens Act. However, there are exceptions to this main rule, e.g. in section 24 of the Aliens Order.
New exemption from the work permit requirement
Foreigners who are employed in a company established abroad that is affiliated with a company established in Denmark with a minimum of 50 employees, and who for up to two (2) separate work periods of each maximum 15 working days within 180 days must perform work for the company established in Denmark. The periods of work must be separated by a stay outside Denmark of at least 14 days' duration. Sentence 1 does not apply to the sectors of building and construction, agriculture, forestry and horticulture, cleaning, including window cleaning, hotel and restaurant services and road haulage, unless the persons concerned are to perform management work, work requiring knowledge at the highest level or work requiring knowledge at an intermediate level in Denmark.
This new exemption provision means that third-country nationals no longer need to apply for a Danish work permit if they meet the conditions of the new exemption provision. The rule has been introduced to give businesses more flexibility and to support the need for group companies to be able to work across the group.
The employment relationship must be genuine. If the employment relationship is established for the purpose of using the exemption provision in section 24(1)(10) of the Executive Order on Aliens, the provision does not apply.
This condition can, for example, be documented with a signed statement from the company established abroad stating when the foreigner was hired and when his or her contract expires, as well as the position in which the foreigner is employed. The employment relationship can also be documented by presenting a copy of the foreign national's employment contract.
The company must be established abroad and affiliated with a Danish company
It is also a condition for being covered by the exemption provision that the company established abroad is affiliated with a company established in Denmark. Affiliated companies are companies in the same group. It is not a requirement that the parent company is located in Denmark.
The clear starting point is that there is a group if the parent company and subsidiary have the same name. If the foreign company has a different name than the company located in Denmark, or if there is any doubt as to whether the two companies are part of the same group, the Danish company must document the group relationship. This could be in the form of a link to the group's website, which states that the companies are part of the same group.
A foreign company that is established solely for the purpose of using the group exemption rule, e.g. to send temporary workers to Denmark, will not be covered.
The Danish company must have at least 50 employees
It is also a requirement that the Danish company has at least 50 employees. However, there are no requirements for the size of the company abroad. There is no requirement that the employees in the company established in Denmark must be full-time employees.
The company established in Denmark must document the current number of employees by stating the number of employees listed in the CVR (Central Business Register).
Length of stay
Provided that the above conditions are met, the foreigner may perform work for the company established in Denmark for up to two (2) separate periods of no more than 15 consecutive working days each within 180 days. The work periods must be separated by a stay outside Denmark of at least 14 calendar days. The stay outside Denmark can for example be a vacation stay in another country, including in another Schengen country. The stay outside Denmark can also be a work stay or training stay, e.g. at a branch of the company in another EU/EEA country. Each work period may not exceed 15 consecutive working days.
It is also a requirement that the foreigner can enter and stay in Denmark legally, either as a citizen of a visa-free country or because the foreigner has a visa.
If the foreigner is to perform an activity that is not defined as work within the meaning of the Aliens Act, this does not count towards the calculation of the 15 consecutive working days. This may be the case, for example, if the foreigner is to participate in training in the Danish company. Training can be, for example, if a newly hired employee is going to Denmark in connection with onboarding or the like.
The nature of the work
The provision in section 24(1)(10) generally applies regardless of the type of work the foreigner will perform in Denmark. However, the rule is not intended for manual work at skilled or unskilled level and is thus only applicable to management work or work that requires knowledge at the highest or intermediate level. In relation to the type of work, the provision is specifically limited to the following industries: building and construction, agriculture, forestry and horticulture, cleaning (including window cleaning), hotels and restaurants and road freight transport.
This means that work of a supervisory nature within the mentioned industries will be covered by the provision, while manual work of an executive nature will fall outside the scope of this provision.
Documentation
The Danish company and the foreign employee are both responsible for documenting that the foreign national is covered by the exemption provision for affiliated companies, regardless of whether the foreign employee is visa-free or subject to a visa requirement. It is therefore recommended that the company located in Denmark and the foreign employee familiarize themselves with the conditions for the scheme, which can be found at https://nyidanmark.dk/da/Ord-og-begreber/SIRI/Fritagelsesreglerne.
Originally published January 24, 2024
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